REIT Asset Sales: Opportunistic Versus Liquidation

31 Pages Posted: 14 Sep 2013

Date Written: Fall 2013


This study provides novel evidence that the outcome from REIT sales of office and apartment property is signaled in the transaction price managers accept relative to the fundamental value. The identification strategy recognizes opportunistic sales as sold at prices above fundamental value. Opportunistic sales are followed by positive abnormal returns, measured relative to the market and associated benchmark indices. Assets sold below fundamental value are liquidated by firms with low profitability, low cash and low investment opportunities. Discounted transactions experience zero abnormal returns. Returns following asset sales are influenced by accounting measures, the flow of funds and financial constraints.

Suggested Citation

Wiley, Jonathan, REIT Asset Sales: Opportunistic Versus Liquidation (Fall 2013). Real Estate Economics, Vol. 41, Issue 3, pp. 632-662, 2013. Available at SSRN: or

Jonathan Wiley (Contact Author)

Georgia State University ( email )

35 Broad Street
Atlanta, GA 30303-3083
United States

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